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The Basics of Supply Chain Modeling

In a recent post, we outlined the justification for and initial steps involved in rethinking supply chain design. Briefly, in order for retailers to remain competitive with Amazon, it’s essential to identify ways to reduce shipping costs to be able meet the consumer’s new expectation of low cost two-day shipping services.
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By taking a high-level look at your supply chain design and evaluating the costs and benefits of expanding your distribution network, you may discover that strategically locating additional distribution centers reduces two-day shipping costs significantly.
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